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Funding the Fund: Recent Developments

There have been several developments recently concerning funding for development and, specifically, for the Global Fund. This article provides a summary.

CSOs appeal to BRICS countries

A group of about a dozen civil society organisations (CSOs) working in Africa have called on BRICS countries to invest more in health and, in particular, in the Global Fund. The acronym “BRICS” stands for the emerging economies of Brazil, Russia, India, China and South Africa. The call was delivered to delegates at the BRICS Summit in Durban, South Africa on 25–26 March.

While applauding the fact that, in January 2013, the BRICS countries re-affirmed their commitment to addressing emerging health threats, the CSOs said that in practice the BRICS countries have not invested sufficiently in health in their respective countries or in South-South collaboration on HIV, TB and malaria.

The CSOs called for “urgent and effective measures to increase domestic investments in health and to fully fund the Global Fund” in the 2014–2016 replenishment period.

Source: ITPC listserv.

Call for East African governments to invest more

A group of 11 CSOs working in East Africa have called on East African governments to demonstrate political will and to allocate adequate funding to ensure the achievement of health-related Millennium Development Goals in Africa.

Specifically, the CSOs called on the governments to allocate at least 15% of national budgets to health; to step up domestic resource mobilisation; and commit to securing a fully funded Global Fund.

Source: Global Fund Advocacy Network listserv.

US Congress approves contribution to Global Fund

On 21 March, the US Congress approved $1.65 billion in funding for the Global Fund. This is part of the US contribution for 2011–2013. President Barack Obama had asked for $1.65 billion in the fiscal 2013 budget he sent to Congress in 2012.

The president is expected to send his fiscal 2014 budget to Congress on 10 April. That budget may contain an indication of what the president is proposing as the US contribution for the first year of the 2014–2016 replenishment period.

Sources: Global Fund website and Bloomberg News.

Pre-replenishment meeting in Brussels

The Global Fund is hosting a pre-replenishment meeting in Brussels, Belgium on 9–10 April. The main purpose of the meeting is to provide officials in donor countries with an opportunity to analyse, and ask questions about, the needs, available funding and the Global Fund’s future plans. A full replenishment conference will be held in about six months.

The Global Fund Advocates Network is organising a meeting of CSOs in Brussels on 7–8 April, primarily to work with the NGO and communities delegations on the Global Fund Board in preparation for the pre-replenishment meeting. The CSOs are organising a public “mobilisation for a fully funded Global Fund” in Brussels on 8 April.

GFAN is also soliciting signatories for a call for action asking donors to fully fund the Global Fund by committing at least $15 billion for 2014–2016.

In addition, GFAN is developing a position paper on the needs for fighting HIV, TB and malaria in 2014–2016. A draft of the paper will be discussed at the CSO meeting on 7–8 April. The final paper will be released the same week.

On 20 March, in a budget tabled in Parliament, the UK Government pledged to meet the 0.7% target for development aid. This means that Britain will join Sweden, Norway, Luxembourg and Denmark as a member of the small club of countries that meet the UN target – first agreed in 1970 – of spending 0.7% of gross national income on official development assistance.

Funding from donor governments is still by far the largest source of income for the Global Fund. As of December 2012, pledges from the public sector, at $28.8 billion, represented 95% of total pledges since the Fund started in 2002. Pledges from the private sector, from foundations and from innovative financing initiatives constitute the remaining 5% ($1.7 billion).